There were no surprises in Wednesday’s autumn statement, with Philip Hammond living up to his cautious reputation.
The key points from the Chancellors statement are –
- The personal allowance will increase to £11,500 from April 2017.
- The National Living Wage will rise from £7.20 to £7.50 in April, for those aged 25 and over. This is a smaller rise than had been predicted earlier in the year.
- While the more popular uses of salary sacrifice schemes – pensions, childcare vouchers and bicycles, remain unchanged, other items bought under the scheme such as computers, gym membership, and health screening will now be subject to tax.
- A new savings bond will be launched, with an interest rate of about 2.2%. This is in addition to the Lifetime Individual Savings Account (LISA) for those aged between 18 and 40 which can be opened from April 2017 to which the government will add a 25% bonus if the money is used to buy a home or as a pension.
- There will be changes to the flat rate VAT scheme for small business – watch this space for more information.
- While fuel duty remains frozen, insurance premium tax will rise to 12%.
- The government is introducing a new tax relief to help those who buy and sell on a small scale, such as on internet auction sites or at car boot sales. From April 2017, the first £1,000 a year of income will not be taxable. There will be similar relief for the first £1,000 of property income, such as from letting your room via a website.
Roll on the Spring Budget!
If you have any questions about any of the points and how they may affect you and your business, please call us.